The agreement mandates 2,500t monthly production after a seven-month development phase, boosting revenue for Red Metal’s Chilean operations.
Red Metal Resources has finalized a five-year mining lease for its Carrizal Copper-Gold-Cobalt Property in Chile’s Atacama Region. The deal requires Minera KMT to produce at least 2,500 metric tons of ore monthly following a seven-month development period, ensuring steady revenue for Red Metal’s subsidiary, Minera Polymet.
Under the agreement, Red Metal will receive 10% of sales from copper, silver, and gold ores, minus a 1.5% royalty, and 15% from cobalt-bearing ores. Historic production at the site from 2015 to 2017 yielded 12,905 tons of sulphide ore with grades of 1.86% copper, 7.8 g/t silver, and 0.23 g/t gold.
Mining will commence at Level 7, where previous operations extracted 5,080 tons of high-grade ore. The site’s potential is underscored by past shipments to Chile’s ENAMI processing facility, which confirmed substantial mineral content.